A bad start to the year for Canadian natural gas producers is getting worse after wildfires in northern Alberta knocked out oil-sands operations that represent a key source of demand. Spot gas prices in Western Canada have been cut by more than half after oil-sands developers curtailed about 40 percent of their supply, reducing the amount of gas used to generate power for drilling and upgrading projects. Canada’s AECO spot gas fell to 53 cents U.S. per gigajoule on Monday, the lowest closing price since 1997, according to data compiled by Bloomberg. Demand lost during the wildfires is another blow to drillers coping with a supply glut and competition from shale output in the U.S. East. Canada’s explorers had already been turning off unprofitable production after a mild winter led to record volumes in storage for the season, sending prices tumbling. The blazes that forced the evacuation of more […]